Accounting for Management Decisions: Defining Performance at Orica Ltd

This report provides an analysis of 'performance' for Orica Limited, a global provider of commercial explosives and blasting systems. It examines Orica's objectives and strategies, focusing on its core values of safety, innovation, and sustainability. The report assesses Orica's performance in these key areas, highlighting its commitment to workplace safety, technological innovation through systems like WebGenTM and BlastIQTM, and sustainable practices in its global manufacturing and supply chain. The analysis includes a review of Orica's financial performance and its alignment with long-term goals, emphasizing the importance of ethical conduct and continuous improvement in its operations. This document is available on Desklib, a platform providing study tools and resources for students.

Running head: ACCOUNTING FOR MANAGEMENT DECISIONS
Accounting for Management Decisions
Name of the Student
Name of the University
Author Note

1ACCOUNTING FOR MANAGEMENT DECISIONS
Executive Summary
The companies set specific objectives and formulate strategies in order to achieve that
without any hindrance. This reveals their actual performance in terms of achieving its stated
strategy and objectives. This report aims to define ‘performance’ for ‘Orica Limited’. The
report will give a short analysis of Orica’s objective and strategies. The performance aspect
of Orica is leading with innovation, ensuring safety and sustainability by ensuring the safety,
health, and wellbeing of the community, environment, staff and the customers with the help
of its team, quality products and services, reliable supply and superior technology. The key
strategies of the company are to be the trusted choice for its customers by delivering
appropriate solutions by providing advanced technology and expertise to be more productive
and manage the risks. Orica operates and measures its performance based on its fundamental
value of safety, innovation, and sustainability for delivering value.

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Table of Contents
Introduction................................................................................................................................3
Discussion..................................................................................................................................3
Organisation’s Overview and Analysis......................................................................................3
Objectives...............................................................................................................................4
Orica Values...........................................................................................................................4
Corporate Strategy and Structure...........................................................................................4
Performance...............................................................................................................................6
Safety......................................................................................................................................6
Innovation..............................................................................................................................6
Sustainability..........................................................................................................................7
Conclusion..................................................................................................................................7
References..................................................................................................................................9

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Introduction
The completion of a function is measured against preset standards of cost, accuracy,
efficiency, and objectives. The performance of a company means to achieve the estimated
results continuously in a way that is more effective and efficient. However, the different
organization has a different way of analyzing its performance. Some value the profits, while
some give importance to their reputation (Mohammed and Knapkova 2016). The aim of
preparing this report is to develop a good understanding and communication skills on how an
organisation can define its performance. The organisation chosen here for making this report
is ‘Orica Limited’, which is the largest provider of commercial explosives and blasting
systems at a global level.
Discussion
Organisation’s Overview and Analysis
Orica Limited is established in the year 1874 that currently employs more than 11,500
people serving across the world. It is the primary provider of commercial explosives and
inventive blasting systems and gives ground support services in mining and tunneling
(Stewart 2014). The company today stands at a value of the multi-billion dollar that goes
globally with effective transitions of leadership, quality, innovation, and safety (Klettner,
Clarke and Boersma 2014). The company’s sustainability is focused on and evaluated based
on its global goals.
The focus and disciplined approach of Orica Limited has a sound result in the year
2018, where dividends per share increased by 4%. The net profit after deducting the taxes is
shown as $386 million, where stabilised earnings before interest and tax are shown as $635
billion. While assessing the performance of the year 2018, Orica has progressed in terms of
their long-term goals (Orica.com 2020). However, the company’s financial performance has

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not met its aspirants as it has made a loss of $48 million in net profit after tax as compared to
its previous year. The revenue is declared as $5,374million in the financial year 2018.
Objectives
Orica has its objective to make its customers successful each day all over the world.
They tend to perform their functions safely, responsibly as well as sustainably. This initiative
ensures the growth of the organisation and the creation of value to the shareholders.
Orica Values
(Source: Orica.com 2020)
Their idea of operating their functions and objectives underlined with its five core
values. The company performs with integrity by transparent communication, ethical conducts
and sustainable practices (Nisato 2018). Orica is committed to its excellence through
delivering an effective result. They tend to provide higher performance by adapting easily to
changing needs.
Corporate Strategy and Structure
The strategy of the company is fulfilled by joining the best workforce or people into
its organization (Choe, Dey and Mishra 2016). They ensure high-quality products and
services, safe and reliable supply, and supreme technology that helps in creating value for
their customers for a long time.

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Managing directors and CEO of the company is accountable to the Boards for leading
and promoting the cost-effective operation and development of the group. The different
Board committees like safety and health, risk, human resource ad compensation, innovation
and technology, and nominations committee are responsible for operating under a Charter
that is approved by the board that sets the authority and responsibility of the committee
(Choe, Dey and Mishra 2014). The Chairman of the company has to be an independent non-
executive director and have a responsibility to control the official matters of the business,
company and the board.
Competitive Strategy: The Company’s strategy framework is formed within the
business strategies of cost advantages and superior technology that can be utilized to meet the
expectation of its people, the consumer, shareholder and a contribution towards the
environment (Andreason and wind 2015). The business tends to use superior technologies
and experts for delivering value to customers.
Operational Strategy: The operational strategy of the company is to implement their
work that is the cost-effective, proper committee for monitoring the day-to-day workings as
well as managing risks and environmental concerns to deliver high-quality service to its
customers.
D e le g a ti o n a n d
R e s p o n s i b il i ti e s
Managing
Director and CEO
Board
Committees
Chairman

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Performance
Performance is closely linked with the strategy and objectives of an organization. The
strategy implemented by the organization helps in analyzing its performance. Orica is
continuous towards its focus in innovation in its technologies and also keeping its employees
in a better position in context with their remuneration (Debruyne and Tackx 2019). The
company tends to create a sustainable environment in terms of its operations and innovation.
However, safety has always been its topmost priority. Therefore, based on the company's
focus, strategies and objectives, the performance analysis of Orica is done with three aspects
that are its safety concern, global innovation and its approach towards sustainability.
Safety
The safety concern of Orica is interlinked with its strategy and objectives as the
business tends to perform safely. Workplace safety and health of their people, community
and visitors is their paramount as it goes with one of their core values and code of conduct
(Dakelalla 2014). The company shows it through its visible leadership, rigorous systems as
well as authentications of key controls. Therefore, the company ensures sharing their
responsibility to create a safe workplace.
The approach toward safety is appropriately guided by their procedures and SHES
policy of safety, health, and environment (Bhattacharyya 2016). Orica takes safety in terms of
both economic and social aspects. Contrary to all such intentions and objectives, Orica
monitors, manages and measures its performance for safety with the help of separate SHEC
Committee.
Innovation
The innovation for an organization leads to the overall performance of the
organization and in increasing its value. Orica believes in work effectively and efficiently for

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its people, community, customers, and environment by continuing its operation while leading
through innovation. The resources industry tends to be transformed through the help of
automation and big data. Orica sustained its competitive strategy by launching the first
wireless initiation system in the (Naidu and Birke 2014). The wireless electronic blasting
system (WebGenTM) uses wireless technology bringing global customers one-step closer to
automation. Further, the company has innovated BlastIQTM that digitally-enabled the data.
This helps the customers to track every record of the blasts and can see its impact on the
overall value chain. When the company enabled the people to see and measure the value of
their decisions then it results in lesser costs, improvement in productivity and safety
consequences as well as regulatory compliance.
Sustainability
Orica’s sustainability is in terms to impact the business as well as the priorities to
external stakeholders. The supply chain and global manufacturing of Orica have concerned
about adding additional securities for the production. The operational efficiency decreases the
potential impact on the ecosystem and communities. It manages energy efficiency by
improving its operations. The company weighs to perform its operations that can eliminate
harm as well as secure the environment.
The manufacturing procedure of Orica adopts new technologies and sources of
energy. The business intends to work with integrity and ethics. The performance of the
company always within the rules and in the benefit of others so that to gain long-term value.
The sustainable performance of Orica is not left with their expertise as well as their people's
skills.

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Conclusion
The performance analysis of Orica reflects that the company intends to work with
continuous innovation in its technologies to sustain in the competitive market at a global
level. The company is highly concerned about the safety of its people and for this; it has
taken better measures to make a safer workplace. Business is concerned with long-term
sustainability. Thus, innovation as technology, safety for people, community and
environment and sustainability in different themes are the long-term business aspects for its
performance.

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References
Andreason, E. and Wind, G., 2015. How to respond to low-cost competition–A case study.
Bhattacharyya, A., 2016. Factors associated with the social and environmental reporting of
Australian companies. Australasian Accounting, Business and Finance Journal, 8(1), p.2014.
Choe, C., Dey, T. and Mishra, V., 2014. Corporate diversification, executive compensation,
and firm value: Evidence from Australia. Australian Journal of Management, 39(3), pp.395-
414.
Dakhelalla, R.F., 2014. The impact of corporate governance principles on board
characteristics: an Australian study.
Debruyne, M. and Tackx, K., 2019. Customer innovation: Delivering a customer-led strategy
for sustainable growth. Kogan Page Publishers.
Hogan, S.J. and Coote, L.V., 2014. Organizational culture, innovation, and performance: A
test of Schein's model. Journal of Business Research, 67(8), pp.1609-1621.
Klettner, A., Clarke, T. and Boersma, M., 2014. The governance of corporate sustainability:
Empirical insights into the development, leadership, and implementation of responsible
business strategy. Journal of Business Ethics, 122(1), pp.145-165.
Klettner, A., Clarke, T. and Boersma, M., 2016. Strategic and regulatory approaches to
increasing women in leadership: Multilevel targets and mandatory quotas as levers for
cultural change. Journal of Business Ethics, 133(3), pp.395-419.
Mohammed, H.K., and Knapkova, A., 2016. The impact of total risk management on
company’s performance. Procedia-Social and Behavioral Sciences, 220(1), pp.271-277.

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Naidu, R. and Birke, V. eds., 2014. Permeable reactive barrier: sustainable groundwater
remediation (Vol. 1). CRC Press.
Nisato, V., 2018. Sustainable business models of b corps: the case of d'Orica.
Orica.com 2020. online Orica.com. Available at:
https://www.orica.com/ArticleDocuments/1762/AR18_Orica_Annual_Report_WEB.pdf.aspx
Accessed 8 Mar. 2020.
Orica.com 2020. online Orica.com. Available at:
https://www.orica.com/ArticleDocuments/311/ORC0020%20Sustainability%20Report
%202018.pdf.aspx Accessed 8 Mar. 2020.
Orica.com 2020. Orica - About Us. online Orica.com. Available at:
https://www.orica.com/About-Us Accessed 8 Mar. 2020.
Stewart, R.F., Orica Explosives Technology Pty Ltd, 2014. Security enhanced the blasting
apparatus, and method of blasting. U.S. Patent 8,839,720.